Did You Notice the Dollar Dropping?

Wonder why those oil prices are rising? It ain't rising demand.

June 2 (Bloomberg) -- The dollar weakened beyond $1.43 against the euro for the first time in 2009 on bets record U.S. borrowing will undermine the greenback, prompting nations to consider alternatives to the world’s main reserve currency.

The 16-nation euro gained for a fourth day versus the dollar as the Russian government said emerging-market leaders may discuss the idea of a supranational currency. The pound rose to the highest level since October and the Canadian dollar traded near an eight-month high on speculation signs of a recovery in U.S. housing will spur higher-yield demand.

Chinese economists are laughing at our treasury secretary's attempts to boost confidence in the dollar.

The only reason the currency hasn't completely tanked is that a good portion of the rest of the world is in as bad a shape as we are, and it takes time to create a new currency. So even if the Russians get their way, it won't happen overnight.

That won't save the dollar.